Record gas prices these last few weeks have garnered major headlines and caught the attention of most Canadians. Transportation is the second-largest sources of greenhouse gas emissions in Canada. With this latest development coupled with a renewed focus on reducing carbon emissions around the world, we thought it would be timely to take a closer look at the various tax credits and incentives to encourage Canadians to save energy and live greener lives. Canadians have access to several tax credits and financial incentives to help them make greener choices when making purchase decisions for their household. These incentives are offered by the Federal government and almost every province in Canada.
Federal Tax Incentives
Hydro/Electric Car Tax Credit
Transport Canada offers tax incentives to drivers to buy and use zero-emissions vehicles (ZEV’s). ZEVs tend to be more expensive than conventional vehicles, so this program helps make the cars more economically feasible. This program offers the following financial incentives for individuals that buy or lease ZEV’s:
Consumers who purchase a battery-electric, hydrogen fuel cell, long-range plug-in hybrid, can be eligible for a point-of-sale incentive of up to $5,000
Consumers who purchase a shorter-range plug-in hybrid vehicle can be eligible for a point-of-sale incentive of up to $2,500
Energy Savings Rebate Program
There are also credits offered to businesses that sell energy-efficient equipment, such as lighting, appliances, and more. The federal government has invested over $200 million to help people afford products that are energy-efficient, otherwise known as ENERGY STAR certified. This program helps consumers save up to 25% on products up to a limit of $500, excluding water heaters and air-source heat pumps, which qualify for a rebate of up to $1,000.
Canada Greener Homes Grant
Canada Greener Homes Grant program offers grants of up to $5,000 to help homeowners make energy efficiency retrofits to their primary residences. To qualify, Canadians must obtain an EnerGuide assessment prior to installing any upgrades. This program also requires a post EnerGuide retrofit home evaluation. You will have to submit your receipts to receive your grant.
We all need to do our part to help our planet deal with climate change. These federal and provincial programs will help lessen the financial burden to going green.
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